Crude oil futures settled higher on Thursday amid easing concerns about outlook for energy demand from China on reports the country decided to ease some Covid-19 restrictions.
A weak dollar amid rising prospects of smaller rate hikes by the Fed, contributed as well to the uptick in oil prices.
The dollar drifted lower, extending losses from the previous session following Fed Chair Jerome Powell’s comments in a speech that rate hikes could slow this month.
West Texas Intermediate Crude oil futures for January ended higher by $0.67 or about 0.8% at $81.22 a barrel, a 2-week high.
According to reports, Guangzhou and Chongqing relaxed some Covid curbs on Wednesday.
Hopes that the Organization of the Petroleum Exporting Countries and allies, collectively known as OPEC+, will consider an output cut when they meet on December 4.
Although the OPEC+ is most likely to hold its output policy unchanged for now, some analyts are of the view that the group might consider further reduction to stabilise oil prices.